Oil fell to the lowest level in more than four months on Monday.

Futures pared losses after slumping as much as 3.2 percent to the lowest intraday price since Dec 20.

"Elections in France and Greece brought eurozone fears back to the fore," said Nam Truong, a dealer at London Capital Group Holdings Plc. Investors are concerned that European austerity measures will weaken and additional stimulus will be needed to "prop up ailing eurozone economies", he said.

Crude for June delivery plunged as much as $3.15 to $95.34 a barrel in electronic trading on the New York Mercantile Exchange and was at $97.89 at 11:07 am London time. The contract tumbled $4.05 to $98.49 on Friday, the lowest close since Feb 7. Prices slipped 6.1 percent last week, the biggest weekly drop since September.

Brent oil for June settlement slid 48 cents, or 0.4 percent, to $112.70 a barrel on the London-based ICE Futures Europe exchange. Trading volumes dropped amid a UK public holiday. The European benchmark contract's premium to West Texas Intermediate was at $14.81, up from $14.69 on May 4.

"It's a confluence of factors dragging oil markets lower," said Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific Pty in Sydney. "Weaker-than-expected jobless numbers and weak services PMI clearly rattled markets, as did the Greek and French election results."

"It remains to be seen whether higher fiscal spending will translate into the hoped-for economic growth and subsequently into higher oil demand," said analysts at researcher JBC Energy GmbH in Vienna.

Greece's poll casts doubt on whether the two main parties can put together a government strong enough to implement spending cuts to ensure the flow of bailout funds. Official projections predicted the two parties that partnered to secure a second rescue package for Greece, Pasok and New Democracy, would fall one short of the 151 seats needed to win a majority.

A eurozone composite index based on a survey of purchasing managers in services and manufacturing dropped to 46.7 in April from 49.1 in March, with a reading below 50 indicating contraction, London-based Markit Economics said on Friday. That's the fastest rate of decline since October.

The euro declined to the lowest level in three months on Monday. That makes oil, denominated in US dollars, more expensive for investors holding the European currency.

Crude may fall further on "lackluster" macroeconomic conditions and bearish fundamentals, said Hussein Allidina, head of commodities research at Morgan Stanley. If OPEC production continues unchanged, global oil inventories will rise to levels that are "above normal" in the third quarter, and crude supply this year will average 813,000 barrels a day more than demand, he said.

Members of the Organization of Petroleum Exporting Countries are currently producing 32.3 million barrels a day, the group's Secretary-General Abdalla el-Badri told reporters in Paris on Thursday. That exceeds the 30 million barrels a day OPEC agreed to pump at its last ministerial meeting.

"We maintain that the path of least resistance for oil is lower, particularly with bearish catalysts continuing to emerge," Allidina said in the report.